-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, TjiZUXr6Pvh4d5K3Ve1AOEH6UE1XRoPtQYvonz2cvteY0ZSLXB7SZxGB/0jxy2B5 ZP/tmu73a8qyQITpJtlTjQ== /in/edgar/work/20000810/0000931763-00-001865/0000931763-00-001865.txt : 20000921 0000931763-00-001865.hdr.sgml : 20000921 ACCESSION NUMBER: 0000931763-00-001865 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 20000630 FILED AS OF DATE: 20000810 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ALABAMA NATIONAL BANCORPORATION CENTRAL INDEX KEY: 0000926966 STANDARD INDUSTRIAL CLASSIFICATION: [6022 ] IRS NUMBER: 631114426 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 000-25160 FILM NUMBER: 690196 BUSINESS ADDRESS: STREET 1: 1927 FIRST AVENUE NORTH CITY: BIRMINGHAM STATE: AL ZIP: 35209 BUSINESS PHONE: 2055833600 MAIL ADDRESS: STREET 1: 1927 FIRST AVENUE NORTH STREET 2: 1927 FIRST AVENUE NORTH CITY: BIRMINGHAM STATE: AL ZIP: 35209 10-Q 1 0001.txt FORM 10-Q SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ____________ FORM 10-Q QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended June 30, 2000 OR TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File No. 0-25160 ALABAMA NATIONAL BANCORPORATION ------------------------------- (Exact Name of Registrant as Specified in Its Charter) DELAWARE 63-1114426 -------- ---------- (State of Incorporation) (I.R.S. Employer Identification No.) 1927 FIRST AVENUE NORTH, BIRMINGHAM, ALABAMA 35203-4009 ------------------------------------------------------- (Address of principal executive office) Registrant's telephone number, including area code: (205) 583-3600 -------------- _____________________________________________ (Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report) Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X No_____ ---------- --------------------- Indicate the number of shares outstanding of each of the registrant's classes of common stock, as of the latest practicable date. Class Outstanding at August 10, 2000 ----- ------------------------------ Common Stock, $1.00 Par Value 11,045,469 INDEX ALABAMA NATIONAL BANCORPORATION AND SUBSIDIARIES
PART 1. FINANCIAL INFORMATION PAGE - ----------------------------- ---- Item 1. Financial Statements (Unaudited) Consolidated statements of condition June 30, 2000 and December 31, 1999.................................................................... 3 Consolidated statements of income Three months ended June 30, 2000 and 1999; six months ended June 30, 2000 and 1999................................................................ 4 Consolidated statements of other comprehensive income Three months ended June 30, 2000 and 1999; six months ended June 30, 2000 and 1999................................................................ 8 Consolidated statements of cash flows six months ended June 30, 2000 and 1999................................................................ 10 Notes to the unaudited consolidated financial statements June 30, 2000.......................................................................................... 11 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations.............................................................................. 14 Item 3. Quantitative and Qualitative Disclosures about Market Risk............................................. 28 PART II. OTHER INFORMATION - -------------------------- Item 4. Submission of Matters to a Vote of Security Holders.................................................... 28 Item 6. Exhibits and Reports on Form 8-K....................................................................... 28 SIGNATURES....................................................................................................... 29
FORWARD-LOOKING INFORMATION - --------------------------- Statements contained in this Quarterly Report on Form 10-Q that are not historical facts are forward-looking statements. In addition, Alabama National BanCorporation ("Alabama National" or, the "Company"), through its senior management, from time to time makes forward-looking public statements concerning its expected future operations and performance and other developments. Such forward-looking statements are necessarily estimates reflecting Alabama National's best judgement based upon current information and involve a number of risks and uncertainties, and various factors could cause results to differ materially from those contemplated by such forward-looking statements. Such factors could include those identified from time to time in Alabama National's Securities and Exchange Commission filings and other public announcements. With respect to the adequacy of the allowance for loan losses for Alabama National, these factors include the rate of growth in the economy, especially in the Southeast, the relative strength and weakness in the consumer and commercial credit sectors and in the real estate markets and the performance of the stock and bond markets. 2 Part I - Financial Information - ------------------------------ Item 1 - Financial Statements (Unaudited) Alabama National BanCorporation and Subsidiaries Consolidated Statements of Condition ------------------------------------ (In thousands, except share amounts)
June 30, 2000 December 31, 1999 ------------- ----------------- (Unaudited) Assets Cash and due from banks........................................................ $ 92,231 $ 73,125 Interest-bearing deposits in other banks....................................... 1,760 6,768 Investment securities (estimated market values of $36,275 and $19,738)......... 36,070 19,616 Securities available for sale.................................................. 311,315 325,507 Trading securities............................................................. 18 2,701 Federal funds sold and securities purchased under resell agreements............ 18,279 33,568 Loans held for sale............................................................ 7,126 8,615 Loans.......................................................................... 1,475,610 1,321,245 Unearned income................................................................ (1,024) (1,085) ------------ ----------- Loans, net of unearned income.................................................. 1,474,586 1,320,160 Allowance for loan losses...................................................... (19,159) (18,068) ------------ ----------- Net loans...................................................................... 1,455,427 1,302,092 Property, equipment and leasehold improvements, net............................ 46,636 43,855 Intangible assets.............................................................. 10,396 10,730 Cash surrender value of life insurance......................................... 40,092 31,642 Receivable from investment division customers.................................. 10,313 24,573 Other assets................................................................... 33,006 39,092 ------------ ----------- Totals......................................................................... $ 2,062,669 $ 1,921,884 ============ =========== Liabilities and Stockholders' Equity Deposits: Noninterest bearing.......................................................... $ 237,530 $ 210,185 Interest bearing............................................................. 1,308,152 1,231,970 ------------ ----------- Total deposits................................................................. 1,545,682 1,442,155 Federal funds purchased and securities sold under repurchase agreements........ 170,925 131,878 Treasury, tax and loan accounts................................................ 4,932 6,199 Short-term borrowings.......................................................... 84,389 18,389 Accrued expenses and other liabilities......................................... 32,270 61,003 Long-term debt................................................................. 80,968 124,005 ------------ ----------- Total liabilities.............................................................. 1,919,166 1,783,629 Common stock, $1 par, authorized 17,500,000 shares; issued 11,187,019 shares at June 30, 2000 and December 31, 1999..................... 11,187 11,187 Additional paid-in capital..................................................... 81,939 81,939 Retained earnings.............................................................. 61,802 54,897 Treasury stock at cost, 145,550 and 121,129 shares at June 30, 2000 and December 31, 1999, respectively............................................... (3,702) (3,226) Accumulated other comprehensive income (loss), net of tax...................... (7,723) (6,542) ------------ ----------- Total stockholders' equity..................................................... 143,503 138,255 ------------ ----------- Totals......................................................................... $ 2,062,669 $ 1,921,884 ============ ===========
See accompanying notes to unaudited consolidated financial statements 3 Alabama National BanCorporation and Subsidiaries Consolidated Statements of Income (Unaudited) --------------------------------------------- (In thousands, except per share data)
For the three months ended June 30, -------------- 2000 1999 ---- ---- Interest income: Interest and fees on loans..................................................... $ 32,463 $ 24,236 Interest on securities......................................................... 5,997 4,659 Interest on deposits in other banks............................................ 68 17 Interest on trading securities................................................. 22 124 Interest on Federal funds sold and securities purchased under resell agreements...................................................... 474 632 --------- --------- Total interest income.............................................................. 39,024 29,668 Interest expense: Interest on deposits........................................................... 15,538 11,293 Interest on Federal funds purchased and securities sold under repurchase agreements.................................................. 2,472 1,587 Interest on long and short-term borrowings..................................... 2,320 826 --------- --------- Total interest expense............................................................. 20,330 13,706 --------- --------- Net interest income................................................................ 18,694 15,962 Provision for loan losses.......................................................... 627 368 --------- --------- Net interest income after provision for loan losses................................ 18,067 15,594 Noninterest income: Securities gains............................................................... - 23 Gain (loss) on disposition of assets........................................... (6) 222 Service charges on deposit accounts............................................ 1,935 1,784 Investment division income..................................................... 1,082 1,718 Securities brokerage income.................................................... 1,156 993 Trust department income........................................................ 569 545 Origination and sale of mortgage loans......................................... 947 1,131 Bank owned life insurance...................................................... 521 362 Insurance commissions.......................................................... 510 132 Other.......................................................................... 921 636 --------- --------- Total noninterest income........................................................... 7,635 7,546
4 Alabama National BanCorporation and Subsidiaries Consolidated Statements of Income (Unaudited) (Continued) --------------------------------------------------------- (In thousands, except per share data)
For the three months ended June 30, -------------- 2000 1999 ---- ---- Noninterest expense: Salaries and employee benefits.............................................. 10,153 9,137 Occupancy and equipment expenses............................................ 2,051 1,722 Other....................................................................... 4,964 4,377 -------- -------- Total noninterest expense....................................................... 17,168 15,236 -------- -------- Income before provision for income taxes........................................ 8,534 7,904 Provision for income taxes...................................................... 2,631 2,524 -------- -------- Net income...................................................................... $ 5,903 $ 5,380 ======== ======== Net income per common share (basic)............................................. $ .53 $ .48 ======== ======== Weighted average common shares outstanding (basic).............................. 11,065 11,100 ======== ======== Net income per common share (diluted)........................................... $ .53 $ .48 ======== ======== Weighted average common shares outstanding (diluted)............................ 11,218 11,267 ======== ========
See accompanying notes to unaudited consolidated financial statements 5 Alabama National BanCorporation and Subsidiaries Consolidated Statements of Income (Unaudited) --------------------------------------------- (In thousands, except per share data)
For the six months ended June 30, -------------- 2000 1999 ---- ---- Interest income: Interest and fees on loans........................................................... $ 61,921 $ 47,395 Interest on securities............................................................... 11,831 9,478 Interest on deposits in other banks.................................................. 124 21 Interest on trading securities....................................................... 62 209 Interest on Federal funds sold and securities purchased under resell agreements...... 1,180 1,376 --------- --------- Total interest income.................................................................... 75,118 58,479 Interest expense: Interest on deposits................................................................. 29,927 22,080 Interest on Federal funds purchased and securities sold under repurchase agreements.. 4,264 3,383 Interest on long and short-term borrowings........................................... 4,325 1,678 --------- --------- Total interest expense................................................................... 38,516 27,141 --------- --------- Net interest income...................................................................... 36,602 31,338 Provision for loan losses................................................................ 1,153 930 --------- --------- Net interest income after provision for loan losses...................................... 35,449 30,408 Noninterest income: Securities gains..................................................................... - 189 Gain (loss) on disposition of assets................................................. (8) 208 Service charges on deposit accounts.................................................. 3,753 3,622 Investment division income........................................................... 2,346 3,958 Securities brokerage income.......................................................... 2,460 1,886 Trust department income.............................................................. 1,139 1,070 Origination and sale of mortgage loans............................................... 1,735 2,369 Bank owned life insurance............................................................ 988 725 Insurance commissions................................................................ 1,097 132 Other................................................................................ 1,740 1,294 --------- --------- Total noninterest income................................................................. 15,250 15,453
6 Alabama National BanCorporation and Subsidiaries Consolidated Statements of Income (Unaudited) (Continued) --------------------------------------------------------- (In thousands, except per share data)
For the six months ended June 30, -------------- 2000 1999 ---- ---- Noninterest expense: Salaries and employee benefits............................................ 20,204 18,490 Occupancy and equipment expenses.......................................... 3,992 3,387 Other..................................................................... 9,834 8,742 --------- --------- Total noninterest expense.................................................... 34,030 30,619 --------- --------- Income before provision for income taxes..................................... 16,669 15,242 Provision for income taxes................................................... 5,108 4,843 --------- --------- Net income................................................................... $ 11,561 $ 10,399 ========= ========= Net income per common share (basic).......................................... $ 1.04 $ .94 ========= ========= Weighted average common shares outstanding (basic)........................... 11,066 11,061 ========= ========= Net income per common share (diluted)........................................ $ 1.03 $ .93 ========= ========= Weighted average common shares outstanding (diluted)......................... 11,212 11,236 ========= =========
See accompanying notes to unaudited consolidated financial statements 7 Alabama National BanCorporation and Subsidiaries Consolidated Statements of Other Comprehensive Income (Unaudited) ----------------------------------------------------------------- (In thousands)
For the three months ended June 30, -------------- 2000 1999 ---- ---- Net income........................................................................ $ 5,903 $ 5,380 Other comprehensive income (loss): Unrealized gains (loss) on securities available for sale...................... (1,230) (4,778) Less: Reclassification adjustment for net gains included in net income............ - 23 -------- -------- Other comprehensive income (loss), before tax..................................... (1,230) (4,801) Provision for (benefit of) income taxes related to items of other comprehensive income........................................................................ (428) (1,568) --------- --------- Other comprehensive income (loss), net of tax..................................... (802) (3,233) --------- --------- Comprehensive income.............................................................. $ 5,101 $ 2,147 ========= =========
See accompanying notes to unaudited consolidated financial statements 8 Alabama National BanCorporation and Subsidiaries Consolidated Statements of Other Comprehensive Income (Unaudited) ----------------------------------------------------------------- (In thousands)
For the six months ended June 30, -------------- 2000 1999 ---- ---- Net income................................................................................. $ 11,561 $ 10,399 Other comprehensive income (loss): Unrealized gains (loss) on securities available for sale............................... (1,902) (5,204) Less: Reclassification adjustment for net gains included in net income.................... - 189 --------- --------- Other comprehensive income (loss), before tax.............................................. (1,902) (5,393) Provision for (benefit of) income taxes related to items of other comprehensive income..... (721) (1,769) --------- --------- Other comprehensive income (loss), net of tax.............................................. (1,181) (3,624) --------- --------- Comprehensive income....................................................................... $ 10,380 $ 6,775 ========= =========
See accompanying notes to unaudited consolidated financial statements 9 Alabama National BanCorporation and Subsidiaries Consolidated Statements of Cash Flows (Unaudited) ------------------------------------------------- (In thousands)
For the six months ended June 30, -------------- 2000 1999 ---- ---- Net cash flows provided by operating activities........................................ $ 9,394 $ 6,687 Cash flows from investing activities: Proceeds from maturities of investment securities...................................... 4,500 9,324 Purchases of investment securities...................................................... (20,954) - Purchases of securities available for sale............................................. (32,091) (73,966) Proceeds from sale of securities available for sale.................................... 125 256 Proceeds from maturities of securities available for sale.............................. 44,328 59,952 Net (increase) decrease in interest bearing deposits in other banks.................... 5,008 (1,271) Net decrease in Federal funds sold and securities purchased under resell agreements.... 15,289 16,428 Net increase in loans.................................................................. (153,512) (101,298) Purchases of property, equipment and leasehold improvements............................ (4,487) (5,619) Cash paid for bank-owned life insurance................................................ (8,013) (198) Costs capitalized on other real estate owned........................................... (48) - Proceeds from sale of other real estate owned.......................................... 421 - Proceeds from sale of property, equipment and leasehold improvements................... 8 41 ---------- ---------- Net cash used in investing activities.................................................. (149,426) (96,351) ---------- ---------- Cash flows from financing activities: Net increase in deposits............................................................... 103,527 138,903 Increase (decrease) in Federal funds purchased and securities sold under agreements to repurchase...................................................................... 39,047 (45,703) Net increase in short and long-term borrowings and capital leases...................... 21,696 10,896 Issue common stock..................................................................... - (62) Exercise of stock options.............................................................. 7 704 Purchase of treasury stock............................................................. (491) - Dividends on common stock.............................................................. (4,648) (3,976) ---------- ---------- Net cash provided by financing activities.............................................. 159,138 100,762 ---------- ---------- Increase in cash and cash equivalents.................................................. 19,106 11,098 Cash and cash equivalents, beginning of period......................................... 73,125 70,813 ---------- ---------- Cash and cash equivalents, end of period............................................... $ 92,231 $ 81,911 ========== ========== Supplemental schedule of noncash investing and financing activities Acquisition of collateral in satisfaction of loans..................................... $ 513 $ 526 ========== ========== Adjustment to market value of securities available for sale, net of deferred income taxes.............................................................................. $ (1,181) $ (3,624) ========== ==========
See accompanying notes to unaudited consolidated financial statements 10 ALABAMA NATIONAL BANCORPORATION AND SUBSIDIARIES NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 2000 NOTE A - BASIS OF PRESENTATION - ------------------------------ The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the six months ended June 30, 2000 are subject to year-end audit and are not necessarily indicative of the results of operations to be expected for the year ending December 31, 2000. These interim financial statements should be read in conjunction with the consolidated financial statements and footnotes thereto included in Alabama National's Annual Report on Form 10-K for the year ended December 31, 1999. NOTE B - COMMITMENT AND CONTINGENCIES - ------------------------------------- Alabama National's subsidiary banks make loan commitments and incur contingent liabilities in the normal course of business, which are not reflected in the consolidated statements of condition. NOTE C - RECENTLY ISSUED PRONOUNCEMENTS - --------------------------------------- Derivative Investments and Hedging Activities In June 1998, the FASB issued Statement of Financial Standard No. 133, Accounting for Derivative Instruments and Hedging Activities, ("Statement 133"), effective for all fiscal quarters of all fiscal years beginning after June 30, 1999. Statement 133 standardizes the accounting for derivative instruments, including certain derivative instruments embedded in other contracts, by requiring that an entity recognize those items as assets or liabilities in the statement of financial position and measure them at fair value. If certain conditions are met, an entity may elect to designate a derivative instrument as a hedging instrument. Statement 133 generally provides for matching the timing of gain or loss recognition on the hedging instrument with the recognition of (a) the changes in the fair value of the hedged asset or liability that are attributable to the hedged risk or (b) the earnings effect of the hedged forecasted transaction. Statement 133, as amended by Statement of Financial Accounting Standards No. 137, Accounting for Derivative Instruments and Hedging Activities-Deferral of the Effective Date of SFAS No. 133, and Statement of Financial Accounting Standards No. 138, Accounting for Derivative Instruments and Hedging activities--an amendment of SFAS No. 133, is effective for fiscal years beginning after June 15, 2000, and is effective for interim periods in the year of adoption. Management of the Company does not expect the adoption of Statement 133 to have a material impact on its financial statements since the Company does not invest in derivative instruments. NOTE D - TREASURY STOCK REPURCHASE PLAN - ---------------------------------------- On April 21, 2000, the board of directors of the Company authorized the repurchase of up to 250,000 shares of its common stock either through open market purchases, private transactions, or both through March 31, 2001. The repurchased shares may be used for general corporate purposes, including acquisitions and reissuance under certain stock benefit plans of the Company. During the three months ended June 30, 2000, the Company repurchased 25,000 shares of its common stock. The number of shares ultimately repurchased will depend on subsequent developments and market availability. 11 NOTE E - EARNINGS PER SHARE - -------------------------- The following table reflects the reconciliation of the numerator and denominator of the basic earnings per share computation to the diluted earnings per share computation for the three months and six months ended June 30, 2000 and 1999. ALABAMA NATIONAL BANCORPORATION COMPUTATION OF EARNINGS PER SHARE (UNAUDITED)
Per Share Income Shares Amount ----------- ----------- ------------ (In thousands, except per share amounts) THREE MONTHS ENDED JUNE 30, 2000 Basic EPS net income........................................... $ 5,903 11,065 $0.53 ===== Effect of dilutive securities options.......................... - 153 ------- ------ Diluted EPS.................................................... $ 5,903 11,218 $0.53 ======= ====== ===== THREE MONTHS ENDED JUNE 30, 1999 Basic EPS net income........................................... $ 5,380 11,100 $0.48 ===== Effect of dilutive securities options.......................... - 167 ------- ------ Diluted EPS.................................................... $ 5,380 11,267 $0.48 ======= ====== ===== SIX MONTHS ENDED JUNE 30, 2000 Basic EPS net income........................................... $11,561 11,066 $1.04 ===== Effect of dilutive securities options.......................... - 146 ------- ------ Diluted EPS.................................................... $11,561 11,212 $1.03 ======= ====== ===== SIX MONTHS ENDED JUNE 30, 1999 Basic EPS net income........................................... $10,399 11,061 $0.94 ===== Effect of dilutive securities options.......................... - 175 ------- ------ Diluted EPS.................................................... $10,399 11,236 $0.93 ======= ====== =====
NOTE F - BRANCH ACQUISITION - ---------------------------- On May 26, 2000, First American Bank, a subsidiary of the Company, signed a definitive agreement for the acquisition of two banking branches in Madison and Huntsville, Alabama, previously owned by Southern Bank of Commerce. The acquisition of the branches, which hold approximately $70 million in total assets and $54 million in deposits as of June 30, 2000, was completed on August 4, 2000. The acquisition will be accounted for as a purchase transaction. 12 NOTE G - SEGMENT REPORTING - --------------------------- Alabama National's reportable segments represent the distinct major product lines it offers and are viewed separately for strategic planning purposes by management. The following table is a reconciliation of the reportable segment revenues, expenses, and profit to Alabama National's consolidated totals (in thousands).
Investment Securities Mortgage Retail and Services Brokerage Trust Lending Insurance Commercial Corporate Elimination Division Division Division Division Division Banking Overhead Entries Total --------- ---------- ---------- -------- --------- ---------- ---------- ------------ -------- Six months ended June 30, - ------------------------- 2000: - ----- Interest income $ - $1,635 $ - $ 189 $ 11 $74,129 $ (29) $(817) $75,118 Interest expenses 817 114 6 37,821 575 (817) 38,516 ------------------------------------------------------------------------------------------------------ Net interest income 818 75 5 36,308 (604) 36,602 Provision for loan losses 1,153 1,153 Noninterest income 2,346 2,460 1,139 1,810 1,097 6,388 10 15,250 Noninterest expense 2,369 2,803 699 1,292 998 24,355 $ 1,514 34,030 ------------------------------------------------------------------------------------------------------ Net income before tax $ (23) $ 475 $ 440 $ 593 $ 104 $17,188 $(2,108) $ - $16,669 ====================================================================================================== Six months ended June 30, - ------------------------- 1999: - ----- Interest income $ - $ 864 $ - $ 328 $ - $57,672 $ (52) $(333) $58,479 Interest expenses 333 157 26,622 362 (333) 27,141 ------------------------------------------------------------------------------------------------------ Net interest income 531 171 31,050 (414) 31,338 Provision for loan losses 930 930 Noninterest income 3,958 1,886 1,070 2,483 132 5,758 166 15,453 Noninterest expense 3,425 1,933 552 1,633 113 21,554 1,409 30,619 ------------------------------------------------------------------------------------------------------ Net income before tax $ 533 $ 484 $ 518 $1,021 $ 19 $14,324 $(1,657) $ - $15,242 ======================================================================================================
Corporate overhead is comprised of compensation and benefits for certain members of management, merger-related costs, interest expense on parent company debt, amortization of intangibles and other expenses. 13 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Basis of Presentation - --------------------- The following is a discussion and analysis of the consolidated financial condition of the Company and results of operations as of the dates and for the periods indicated. All significant intercompany accounts and transactions have been eliminated. The accounting and reporting policies of the Company conform with generally accepted accounting principles and with general financial services industry practices. This information should be read in conjunction with Alabama National's unaudited consolidated financial statements and related notes appearing elsewhere in this report and "Management's Discussion and Analysis of Financial Condition and Results of Operations" appearing in Alabama National's Annual Report on Form 10- K for the year ended December 31, 1999. Performance Overview - -------------------- Alabama National's net income was $5.90 million for the second quarter of 2000 (the "2000 second quarter") compared to $5.38 million for the second quarter of 1999 (the "1999 second quarter"). Net income for the six months ended June 30, 2000 (the "2000 six months") was $11.56 million compared to $10.40 million for the six months ended June 30, 1999 (the "1999 six months"). Net income per diluted common share for the 2000 and 1999 second quarters was $0.53 and $0.48, respectively. For the 2000 six months, net income per diluted common share was $1.03 compared to $0.93 for the 1999 six months. The annualized return on average assets for Alabama National was 1.18% for the 2000 second quarter compared to 1.28% for the 1999 second quarter. The annualized return on average assets for Alabama National was 1.17% for the 2000 six months compared to 1.24% for the 1999 six months. The annualized return on average stockholders' equity increased for the 2000 second quarter to 16.62%, as compared to 15.88% for the 1999 second quarter. The annualized return on average stockholders' equity increased for the 2000 six months to 16.44%, as compared to 15.55% for the 1999 six months. Book value per share at June 30, 2000 was $12.83, an increase of $0.34 from year-end 1999. Tangible book value per share at June 30, 2000 was $11.90, an increase of $0.38 from year-end 1999. Alabama National paid $0.42 in cash dividends on common shares during the 2000 six months, compared to $0.36 paid on common shares during the 1999 six months. Net Income - ---------- The principal reason for the increase in net income for each of the 2000 second quarter and the 2000 six months, compared to the same periods in 1999, was the growth in net interest income, which is the difference between the income earned on interest bearing assets and the interest paid on deposits and borrowings used to support such assets. Net interest income increased by $2.7 million, or 17.1%, to $18.7 million during the 2000 second quarter from $16.0 million during the 1999 second quarter. Net interest income increased to $36.6 million during the 2000 six months from $31.3 million during the 1999 six months, representing an increase of $5.3 million, or 16.8%. The increase in net interest income was offset by an increase in noninterest expense of $1.9 million to $17.2 million for the 2000 second quarter and $3.4 million to $34.0 million for the 2000 six months, compared to $15.2 million and $30.6 million, respectively for the same periods in 1999. Average earning assets for the 2000 second quarter and 2000 six months increased by approximately $305.2 million and $285.0 million, respectively, and was matched by growth in average interest-bearing liabilities of $320.6 million and $300.3 million during the 2000 second quarter and 2000 six months, respectively. The average taxable equivalent rate earned on assets was 8.61% and 8.46% for the 2000 second quarter and 2000 six months compared to 7.85% and 7.87% for the 1999 second quarter and 1999 six months, respectively. The average rate paid on interest-bearing liabilities was 5.05% and 4.89% for the 2000 second quarter and 2000 six months, respectively, compared to 4.23% and 4.27% for the 1999 second quarter and 1999 six months, respectively. The net interest margin was 4.10% for the 2000 second quarter and 2000 six months compared to 4.19% and 4.18% for 1999 second quarter and 1999 six months, respectively. The reduction in net interest margin is largely due to strong loan demand in excess of growth in low cost deposit accounts. This has resulted in much of the incremental growth of loans being funded by higher cost liability sources, such as Federal Home Loan Bank advances, in-market CD's, and brokered CD's. 14 The following tables depict, on a taxable equivalent basis for the 2000 and 1999 second quarter and six months, certain information related to Alabama National's average balance sheet and its average yields on assets and average costs of liabilities. Such yields or costs are derived by dividing income or expense by the average daily balance of the associated assets or liabilities. AVERAGE BALANCES, INCOME AND EXPENSES AND RATES (Amounts in thousands, except yields and rates)
Six months ended June 30, ---------------------------------------------------------------------- 2000 1999 ---------------------------------- -------------------------------- Average Income/ Yield/ Average Income/ Yield/ Balance Expense Cost Balance Expense Cost ----------- --------- -------- ------------ --------- ------- Assets: Earning assets: Loans (1) (3).................................... $ 1,397,669 $ 62,025 8.92% $ 1,131,053 $ 47,499 8.47% Securities: Taxable......................................... 322,709 11,082 6.91 284,058 8,659 6.15 Tax exempt...................................... 30,466 1,135 7.49 33,384 1,241 7.50 Cash balances in other banks..................... 4,270 124 5.84 816 21 5.19 Funds sold....................................... 39,296 1,180 6.04 54,235 1,376 5.12 Trading account securities....................... 1,854 62 6.72 7,746 209 5.44 ----------- --------- ------------ --------- Total earning assets (2)....................... 1,796,264 75,608 8.46 1,511,292 59,005 7.87 ----------- --------- ------------ --------- Cash and due from banks........................... 70,910 62,515 Premises and equipment............................ 45,543 40,384 Other assets...................................... 85,012 89,873 Allowance for loan losses......................... (18,578) (17,012) ----------- ------------ Total assets.................................. $ 1,979,151 $ 1,687,052 =========== ============ Liabilities: Interest-bearing liabilities: Interest-bearing transaction accounts............ $ 240,928 3,685 3.08 186,946 2,051 2.21 Savings deposits................................. 302,186 5,245 3.49 316,587 5,206 3.32 Time deposits.................................... 743,751 20,997 5.68 568,465 14,823 5.26 Funds purchased.................................. 147,266 4,264 5.82 146,103 3,383 4.67 Other short-term borrowings...................... 32,473 1,104 6.84 28,441 754 5.35 Long-term debt................................... 116,367 3,221 5.57 36,123 924 5.16 ----------- --------- ------------ --------- Total interest-bearing liabilities............. 1,582,971 38,516 4.89 1,282,665 27,141 4.27 ----------- --------- ------------ --------- Demand deposits.................................. 223,357 215,071 Accrued interest and other liabilities........... 31,428 54,495 Stockholders' equity............................. 141,395 134,821 ----------- ------------ Total liabilities and stockholders' equity..... $ 1,979,151 $ 1,687,052 =========== ============ Net interest spread.............................. 3.57% 3.60% ==== ==== Net interest income/margin on a taxable equivalent basis...................... 37,092 4.15% 31,864 4.25% ==== ==== Tax equivalent adjustment (2).................... 490 526 --------- --------- Net interest income/margin....................... $ 36,602 4.10% $ 31,338 4.18% ========= ==== ========= ====
__________________ (1) Average loans include nonaccrual loans. All loans and deposits are domestic. (2) Tax equivalent adjustments are based upon assumed tax rate of 34%, and do not reflect the disallowance for Federal income tax purposes of interest expense related to certain tax exempt assets. (3) Fees in the amount of $1,550,000 and $1,546,000 are included in interest and fees on loans for the six months ended June 30, 2000 and 1999, respectively. 15
AVERAGE BALANCES, INCOME AND EXPENSES AND RATES (Amounts in thousands, except yields and rates) Three months ended June 30, -------------------------------------------------------------------- 2000 1999 --------------------------------- --------------------------------- Average Income/ Yield/ Average Income/ Yield/ Balance Expense Cost Balance Expense Cost ------------ -------- -------- ------------ -------- -------- Assets: Earning assets: Loans (1) (3).................................... $ 1,442,683 $ 32,514 9.06% $ 1,156,799 $ 24,290 8.42% Securities: Taxable......................................... 324,621 5,633 6.98 280,507 4,254 6.08 Tax exempt...................................... 30,031 552 7.39 33,237 613 7.40 Cash balances in other banks..................... 4,604 68 5.94 1,441 17 4.73 Funds sold....................................... 30,664 474 6.22 47,617 632 5.32 Trading account securities....................... 1,175 22 7.53 8,977 124 5.54 ------------ -------- ------------ -------- Total earning assets (2)....................... 1,833,778 39,263 8.61 1,528,578 29,930 7.85 ------------ -------- ------------ -------- Cash and due from banks........................... 73,271 62,868 Premises and equipment............................ 45,741 41,539 Other assets...................................... 84,100 73,742 Allowance for loan losses......................... (18,848) (17,298) ------------ ------------ Total assets.................................. $ 2,018,042 $ 1,689,429 ============ ============ Liabilities: Interest-bearing liabilities: Interest-bearing transaction accounts............ $ 247,057 1,942 3.16 192,190 1,072 2.24 Savings deposits................................. 300,998 2,662 3.56 321,124 2,668 3.33 Time deposits.................................... 753,971 10,934 5.83 585,758 7,553 5.17 Funds purchased.................................. 161,957 2,405 5.97 135,465 1,587 4.70 Other short-term borrowings...................... 44,359 762 6.91 23,776 316 5.33 Long-term debt................................... 110,433 1,625 5.92 39,885 510 5.13 ------------ -------- ------------ -------- Total interest-bearing liabilities............. 1,618,775 20,330 5.05 1,298,198 13,706 4.23 ------------ -------- ------------ -------- Demand deposits................................... 227,803 216,163 Accrued interest and other liabilities............ 28,610 39,215 Stockholders' equity.............................. 142,854 135,853 ------------ ------------ Total liabilities and stockholders' equity...... $ 2,018,042 $ 1,689,429 ============ ============ Net interest spread............................... 3.56% 3.62% ==== ==== Net interest income/margin on a taxable equivalent basis....................... 18,933 4.15% 16,224 4.26% ==== ==== Tax equivalent adjustment (2)..................... 239 262 -------- -------- Net interest income/margin........................ $ 18,694 4.10% $ 15,962 4.19% ======== ==== ======== ====
- ---------------- (1) Average loans include nonaccrual loans. All loans and deposits are domestic. (2) Tax equivalent adjustments are based upon assumed tax rate of 34%, and do not reflect the disallowance for Federal income tax purposes of interest expense related to certain tax exempt assets. (3) Fees in the amount of $815,000 and $811,000 are included in interest and fees on loans for the three months ended June 30, 2000 and 1999, respectively. 16 The following tables set forth, on a taxable equivalent basis, the effect which varying levels of earning assets and interest-bearing liabilities and the applicable rates had on changes in net interest income for the 2000 second quarter and six months compared to the 1999 second quarter and six months, respectively. For the purposes of these tables, changes, which are not solely attributable to volume or rate, are allocated to volume and rate on a pro rata basis. ANALYSIS OF CHANGES IN NET INTEREST INCOME (Amounts in thousands)
Six Months Ended June 30, ------------------------------------- 2000 Compared to 1999 Variance Due to ------------------------------------- Volume Yield/Rate Total ------------------------------------- Earning assets: Loans............................................. $11,854 $ 2,672 $14,526 Securities: Taxable.......................................... 1,270 1,153 2,423 Tax exempt....................................... (104) (2) (106) Cash balances in other banks...................... 100 3 103 Funds sold........................................ (723) 527 (196) Trading account securities........................ (264) 117 (147) ------- -------- -------- Total interest income........................... 12,133 4,470 16,603 Interest-bearing liabilities: Interest-bearing transaction accounts............. 691 943 1,634 Savings and money market deposits................. (488) 527 39 Time deposits..................................... 4,904 1,270 6,174 Funds purchased................................... 28 853 881 Other short-term borrowings....................... 118 232 350 Long-term debt.................................... 2,218 79 2,297 ------- -------- -------- Total interest expense.......................... 7,471 3,904 11,375 ------- -------- -------- Net interest income on a taxable equivalent basis............................... $ 4,662 $ 566 5,228 ======= ======== Taxable equivalent adjustment..................... 36 -------- Net interest income............................... $ 5,264 ========
ANALYSIS OF CHANGES IN NET INTEREST INCOME (Amounts in thousands)
Three Months Ended June 30, ------------------------------------- 2000 Compared to 1999 Variance Due to ------------------------------------- Volume Yield/Rate Total ------------------------------------- Earning assets: Loans.............................................. $ 6,290 $ 1,934 $ 8,224 Securities: Taxable........................................... 710 669 1,379 Tax exempt........................................ (60) (1) (61) Cash balances in other banks....................... 46 5 51 Funds sold......................................... (688) 530 (158) Trading account securities......................... (325) 223 (102) -------- ------- -------- Total interest income............................ 5,973 3,360 9,333 Interest-bearing liabilities: Interest-bearing transaction accounts.............. 357 513 870 Savings and money market deposits.................. (706) 700 (6) Time deposits...................................... 2,341 1,040 3,381 Funds purchased.................................... 343 475 818 Other short-term borrowings........................ 332 114 446 Long-term debt..................................... 1,026 89 1,115 -------- ------- -------- Total interest expense........................... 3,693 2,931 6,624 -------- ------- -------- Net interest income on a taxable equivalent basis................................ $ 2,280 $ 429 2,709 ======== ======= Taxable equivalent adjustment...................... 23 -------- Net interest income................................ $ 2,732 ========
17 The provision for loan losses represents a charge to current earnings necessary to maintain the allowance for loan losses at an appropriate level based on management's analysis of the potential risk in the loan portfolio. The amount of the provision is a function of the level of loans outstanding, the level of non-performing loans, historical loan loss experience, the amount of loan losses actually charged against the allowance during a given period and current economic conditions. The provision for loan losses was $627,000 for the 2000 second quarter, compared with $368,000 in the 1999 second quarter. The higher provision for loan losses in the 2000 second quarter is attributable to a net recovery of $256,000 recorded during the 1999 second quarter. The provision for loan losses was $1,153,000 for the 2000 six months, compared to $930,000 in the 1999 six months. The higher provision for loan losses in the 2000 six months is attributable to the growth in loans outstanding and the net recovery recorded during the 1999 second quarter. The allowance for loan losses as a percentage of outstanding loans, net of unearned income, was 1.30% at June 30, 2000, compared to 1.37% at December 31, 1999. Because of the inherent uncertainty of assumptions made during the assessment process, there can be no assurance that loan losses in future periods will not exceed the allowance for loan losses or that additional allocations to the allowance will not be required. See Asset Quality. ------------- Total noninterest income for the 2000 second quarter was $7.6 million, compared to $7.5 million for the 1999 second quarter. For the 2000 six months, noninterest income decreased to $15.3 million compared to $15.5 million for the 1999 six months. The 2000 second quarter and six months include insurance commissions of $510,000 and $1.1 million, respectively. The insurance division was acquired on May 28, 1999, and the 1999 second quarter and six months only include approximately one month's results for this division. Excluding this income, noninterest income decreased 3.90% and 7.62% for the 2000 second quarter and six months, respectively. Other components of noninterest income include service charges on deposits, investment division revenue, securities brokerage revenue, trust department revenues, and fees relating to the origination and sale of mortgage loans. Service charges on deposits for the 2000 second quarter and 1999 second quarter were $1.9 million and $1.8 million, respectively. For the 2000 six months, service charge income increased to $3.8 million from $3.6 million for the 1999 six months. Reflecting a decline in demand for debt securities from community banks, revenue in the investment division decreased to $1.1 million in the 2000 second quarter from $1.7 million during the 1999 second quarter and decreased $1.6 million to $2.3 million for the 2000 six months. Securities brokerage revenue increased 16.4% to $1.2 million during the 2000 second quarter and totaled $2.5 million for the 2000 six months, an increase of 30.4% over 1999 six month total of $1.9 million. The increase in brokerage revenue is attributable to continued strong production in this area and favorable market conditions. Trust fees increased by 4.4% in the 2000 second quarter compared to the 1999 second quarter and increased 6.4% during the 2000 six months when compared with the 1999 six months. Fees generated from the origination and sale of mortgages declined during 2000 due to rising interest rates and the impact the interest rate environment has on refinancing and new mortgage origination activity. Total fees generated from the origination and sale of mortgages were $947,000 and $1.7 million during the 2000 second quarter and six months, respectively, representing a decline of 16.3% and 26.8%, as compared to the 1999 second quarter and six months. Noninterest expense was $17.2 million for the 2000 second quarter compared to $15.2 million for the 1999 second quarter. For the 2000 six months, noninterest expense was $34.0 million compared to $30.6 million for the 1999 six months. Noninterest expense includes salaries and employee benefits, occupancy and equipment expenses and other expenses. Salaries and employee benefits were $10.2 million for the 2000 second quarter compared to $9.1 million for the 1999 second quarter. For the 2000 six months, salaries and employee benefits were $20.2 million compared to $18.5 million in the 1999 six months. The increase in salaries and employee benefits partially results from the newly acquired insurance agency noted above, but primarily represents general staffing increases in other areas of Alabama National relating to continued expansion and additional compensation related to annual performance reviews. Occupancy and equipment expense totaled $2.1 million in the 2000 second quarter and $1.7 million in the 1999 second quarter. Occupancy and equipment expense totaled $4.0 million in the 2000 six months and $3.4 million in the 1999 six months. The increase in occupancy and equipment expense is also a result of the insurance acquisition and branch expansions. Other noninterest expense increased to $5.0 million in the 2000 second quarter, compared with $4.4 million in the 1999 second quarter. Other noninterest expense was $9.8 million in the 2000 six months and $8.7 million in the 1999 six months. Because of an increase in pre-tax income, income tax expense was $2.6 million for the 2000 second quarter compared to $2.5 for the 1999 second quarter. For the 2000 six months income tax expense was $5.1 million, compared to $4.8 million for the 1999 six months. The effective tax rates for the 2000 second quarter and the 2000 six months were 30.8% and 30.6%, respectively, compared to 31.9% and 31.8% for the same periods of 1999. These effective rates are impacted by items of income and expense that are not subject to federal or state taxation. 18 Earning Assets - -------------- Loans comprised the largest single category of Alabama National's earning assets on June 30, 2000. Loans, net of unearned income, were $1.47 billion or 71.5% of total assets at June 30, 2000, compared to $1.32 billion or 68.7% at December 31, 1999. Loans grew $154.4 million, or 11.7%, during the 2000 six months compared to the 1999 year-end. Average loans grew $266.6 million, or 23.6%, during the 2000 six months, compared to the 1999 six months. The following table details the composition of the loan portfolio by category at the dates indicated:
COMPOSITION OF LOAN PORTFOLIO ----------------------------- (AMOUNTS IN THOUSANDS, EXCEPT PERCENTAGES) June 30, 2000 December 31,1999 -------------- ---------------- Percent Percent Amount of Total Amount of Total ------ -------- ------ -------- Commercial, financial and agricultural................ $ 258,633 17.53% $ 257,047 19.45% Real estate: Construction................ 179,576 12.17 148,228 11.22 Mortgage - residential...... 403,667 27.36 358,400 27.13 Mortgage - commercial....... 393,223 26.65 369,158 27.94 Mortgage - other............ 3,736 .25 3,111 .24 Consumer...................... 71,273 4.83 73,388 5.55 Other......................... 165,502 11.22 111,913 8.47 ---------- ------- ---------- ------ Total gross loans........... 1,475,610 100.00% 1,321,245 100.00% ======= ====== Unearned income............... (1,024) (1,085) ---------- ---------- Total loans, net of unearned income........... 1,474,586 1,320,160 Allowance for loan losses..... (19,159) (18,068) ---------- ---------- Total net loans............. $1,455,427 $1,302,092 ========== ==========
Investment securities increased $16.5 million in the 2000 six months from $19.6 million at December 31, 1999 to $36.1 million at June 30, 2000. During the 2000 six months, the Company purchased $21.0 million of investment securities and received $4.5 million from maturities, including principal paydowns of mortgage backed securities. Securities available for sale decreased $14.2 million in the 2000 six months from $325.5 million at December 31, 1999 to $311.3 million at June 30, 2000. Purchases of available for sale securities totaled $32.1 million and maturities, calls, and sales of available for sale securities totaled $44.3 million. Write downs to estimated market value of available for sale securities totaled $1.2 million, net of income taxes, during the 2000 six months. Trading account securities, which had a balance of $18,000 at June 30, 2000, are securities owned by Alabama National prior to sale and delivery to Alabama National's customers. It is the policy of Alabama National to limit positions in such securities to reduce its exposure to market and interest rate changes. Federal funds sold and securities purchased under agreements to resell totaled $18.3 million at June 30, 2000 and $33.6 million at December 31, 1999. Deposits and Other Funding Sources - ---------------------------------- Deposits increased $103.5 million from year-end 1999, to $1.55 billion at June 30, 2000. All categories of deposits experienced growth during the 2000 six months. Included in deposits at June 30, 2000 and December 31, 1999 were $50.0 million and $47.5 million of brokered deposits, respectively. Federal funds purchased and securities sold under agreements to repurchase totaled $170.9 million at June 30, 2000, an increase of $39.0 million from December 31, 1999. The treasury, tax and loan account decreased to $4.9 million at June 30, 2000, compared with $6.2 million at December 31, 1999. Short-term borrowings at June 30, 2000 totaled $84.4 million, including a note payable to a third party bank of $17.4 million and advances from the Federal Home Loan Bank ("FHLB") totaling $67.0 million. 19 Alabama National's short-term debt at June 30, 2000 and December 31, 1999 is summarized as follows: SHORT-TERM BORROWINGS (Amounts in thousands)
June 30, December 31, 2000 1999 -------- ------------ Note payable to third party bank under secured master note agreement; rate varies with LIBOR and was 7.36% and 7.2113% at June 30, 2000 and December 31, 1999, respectively; collateralized by the Company's stock in subsidiary banks. $ 17,389 $ 16,389 FHLB open ended notes payable, rate varies daily based on the FHLB Daily Rate Credit interest price and was 7.40% and 4.55% at June 30, 2000 and December 31, 1999, respectively; collateralized by FHLB stock and certain first mortgage loans. 24,000 2,000 FHLB debt due June 4, 2001; rate varies with three month LIBOR and was 6.81875% on June 30, 2000; collateralized by FHLB stock and certain first mortgage loans. 43,000 - ---------------------- Total short-term borrowings $ 84,389 $ 18,389 ======================
20 Alabama National's long-term debt at June 30, 2000 and December 31, 1999 is summarized as follows: LONG-TERM BORROWINGS (Amounts in thousands)
June 30, December 31, 2000 1999 ---- ---- FHLB debt due October 21, 2003; interest at fixed rate of 4.30%; convertible at the option of the FHLB on October 21, 2000 to a three month LIBOR advance; collateralized by FHLB stock and certain first mortgage loans. $10,000 $ 10,000 FHLB debt due April 23, 2004; rate varies with LIBOR and was 6.03% and 5.9425% at June 30, 2000 and December 31, 1999, respectively; rate changes to 5.02% from April 23, 2001 to April 23, 2004; convertible at the option of the FHLB on April 23, 2001 to a three month LIBOR advance; collateralized by FHLB stock and certain first mortgage loans. 13,700 13,700 FHLB debt due March 26, 2008; interest at fixed rate of 5.51%; convertible at the option of the FHLB on March 26, 2003 to a three month LIBOR advance; collateralized by FHLB stock and certain first mortgage loans. 5,000 5,000 FHLB debt due July 25, 2001; interest at a fixed rate of 6.40%; collateralized by FHLB stock and certain pledged available for sale securities. 2,000 2,000 FHLB debt due June 18, 2003; interest at a fixed rate of 5.40%; convertible at the option of the FHLB on June 18, 2000 to a three month LIBOR advance; collateralized by FHLB stock and certain first mortgage loans. Note was called in during 2000. - 5,000 FHLB debt due November 5, 2003; interest at a fixed rate of 4.74%; convertible at the option of the FHLB on November 5, 2001 to a three month LIBOR advance; collateralized by FHLB stock and certain first mortgage loans. 5,000 5,000 FHLB debt due August 7, 2009; interest at a fixed rate of 4.95%; convertible at the option of the FHLB on February 7, 2000 and any payment date thereafter; collateralized by FHLB stock and certain first mortgage loans. Note was called during 2000. - 25,000 FHLB debt due July 30, 2004; interest at a fixed rate of 5.715%; convertible in whole at the option of the FHLB on July 30, 2001; collateralized by FHLB stock and certain first mortgage loans. 5,000 5,000 FHLB debt due December 2, 2009; interest at a fixed rate of 5.29%; convertible in whole at the option of the FHLB on June 2, 2000; collateralized by FHLB stock, certain first mortgage loans and pledged available for sale securities. Note was called during 2000. - 43,000 FHLB debt due October 12, 2001; interest rate varies with LIBOR and reprices monthly; rate at June 30, 2000 and December 31, 1999 was 6.675% and 6.50125%, respectively; collateralized by FHLB stock, certain first mortgage loans and certain pledged available for sale securities. 10,000 10,000 FHLB debt due February 11, 2003; interest rate varies with LIBOR and reprices monthly; rate at June 30, 2000 was 6.435%; collateralized by FHLB stock and certain first mortgage loans. 25,000 - FHLB debt due June 15, 2010; interest at a fixed rate of 6.00%; convertible inwhole at the option of FHLB on December 15, 2000 to a three month LIBOR advance; collateralized by FHLB stock and certain first mortgage loans. 5,000 - Various notes payable 35 39 Capital leases payable 233 266 ---------------------- Total long-term borrowings $80,968 $124,005 ======================
21 Asset Quality - ------------- Nonperforming loans are comprised of loans past due 90 days or more and still accruing interest, loans accounted for on a nonaccrual basis and loans in which the terms have been restructured to provide a reduction or deferral of interest or principal because of a deterioration in the financial position of the borrower. At June 30, 2000, the Company had no loans past due 90 days or more and still accruing interest. Accrual of interest is discontinued on a loan when management believes, after considering economic and business conditions and collection efforts, that the borrower's financial condition is such that the collection of interest is doubtful. It is Alabama National's policy to place a delinquent loan on nonaccrual status when it becomes 90 days or more past due. When a loan is placed on nonaccrual status, all interest that is accrued on the loan balance is reversed and deducted from earnings as a reduction of reported interest. No additional interest is accrued on the loan balance until the collection of both principal and interest becomes reasonably certain. When a problem loan is finally resolved, there may ultimately be an actual writedown or charge-off of the principal balance of the loan which could necessitate additional charges to the allowance for loan losses. At June 30, 2000, nonperforming assets totaled $4.8 million, virtually unchanged from year-end 1999. Nonperforming assets as a percentage of loans plus other real estate were 0.33% at June 30, 2000 compared to 0.37% at December 31, 1999. The following table presents the Company's nonperforming assets for the dates indicated. NONPERFORMING ASSETS (Amounts in thousands, except percentages)
June 30, December 31, 2000 1999 ----------- ------------- Nonaccrual loans............................................ $ 4,041 $ 4,141 Restructured loans.......................................... 2 5 Loans past due 90 days or more and still accruing........... - - ------- ------- Total nonperforming loans................................ 4,043 4,146 Other real estate owned.................................... 792 687 ------- ------- Total nonperforming assets............................... $ 4,835 $ 4,833 ======= ======= Allowance for loan losses to period-end loans............... 1.30% 1.37% Allowance for loan losses to period-end nonperforming loans...................................... 473.88 435.79 Allowance for loan losses to period-end nonperforming assets..................................... 396.26 373.85 Net charge-offs to average loans............................ 0.01 0.04 Nonperforming assets to period-end loans and other real estate owned.............................. 0.33 0.37 Nonperforming loans to period-end loans..................... 0.27 0.31
22 Net loan charge-offs for the 2000 six months totaled $62,000, or 0.01% (annualized) of average loans for the period. The allowance for loan losses as a percentage of total loans, net of unearned income, was 1.30% at June 30, 2000, compared to 1.37% at December 31, 1999. The following table analyzes activity in the allowance for loan losses for the 2000 six months. ANALYSIS OF THE ALLOWANCE FOR LOAN LOSSES For the Six Months Ended June 30, 2000 (Amounts in thousands, except percentages)
Allowance for loan losses at beginning of period...................................... $18,068 Charge-offs: Commercial, financial and agricultural................... 135 Real estate - mortgage................................... 32 Consumer................................................. 278 ------- Total charge-offs..................................... 445 ------- Recoveries: Commercial, financial and agricultural.................... 78 Real estate - mortgage.................................... 107 Consumer.................................................. 198 ------- Total recoveries....................................... 383 ------- Net charge-offs........................................ 62 ------- Provision for loan losses................................... 1,153 ------- Allowance for loan losses at end of period............................................. $19,159 =======
The loan portfolio is periodically reviewed to evaluate the outstanding loans and to measure both the performance of the portfolio and the adequacy of the allowance for loan losses. This analysis includes a review of delinquency trends, actual losses and internal credit ratings. Based on this analysis, management considers the allowance for loan losses at June 30, 2000 to be adequate to cover possible loan losses in the portfolio as of that date. However, because of the inherent uncertainty of assumptions made during the evaluation process, there can be no assurance that loan losses in future periods will not exceed the allowance for loan losses or that additional allocations to the allowance will not be required. 23 Interest Rate Sensitivity - ------------------------- The Company monitors and manages the pricing and maturity of its assets and liabilities in order to diminish the potential adverse impact that changes in interest rates could have on net interest income. The principal monitoring technique employed by the Company is simulation analysis, which technique is augmented by "gap" analysis. In simulation analysis, the Company reviews each individual asset and liability category and their projected behavior in various different interest rate environments. These projected behaviors are based upon management's past experiences and upon current competitive environments, including the various environments in the different markets in which the Company competes. Using this projected behavior and differing rate scenarios as inputs, the simulation analysis generates as output a projection of net interest income. The Company also periodically verifies the validity of this approach by comparing actual results with those that were projected in previous models. See Market Risk. ----------- Another technique used by the Company in interest rate management is the measurement of the interest sensitivity "gap," which is the positive or negative dollar difference between assets and liabilities that are subject to interest rate repricing within a given period of time. Interest rate sensitivity can be managed by repricing assets and liabilities, selling securities available for sale, replacing an asset or liability at maturity or by adjusting the interest rate during the life of an asset or liability. The Company evaluates interest sensitivity risk and then formulates guidelines regarding asset generation and repricing, and sources and prices of off-balance sheet commitments in order to decrease interest sensitivity risk. The Company uses computer simulations to measure the net income effect of various interest rate scenarios. The modeling reflects interest rate changes and the related impact on net income over specified periods of time. The following table illustrates Alabama National's interest rate sensitivity at June 30, 2000, assuming relevant assets and liabilities are collected and paid, respectively, based upon historical experience rather than their stated maturities. INTEREST SENSITIVITY ANALYSIS (Amounts in thousands, except ratios)
June 30, 2000 --------------------------------------------------------------------------------- Zero After Three One Through Through Through Three Twelve Three Greater Than Months Months Months Three Years Total ------------ ------------ ----------- ------------ ----------- Assets: Earning assets: Loans (1)................................ $651,767 $ 242,589 $238,955 $344,358 $1,477,669 Securities (2)........................... 23,718 47,033 117,397 148,789 336,937 Trading securities....................... 18 - - - 18 Interest-bearing deposits in............. - - - - - other banks............................ 1,760 - - - 1,760 Funds sold............................... 18,279 - - - 18,279 -------- --------- -------- -------- ---------- Total interest-earning assets........ $695,542 $ 289,622 $356,352 $493,147 $1,834,663 Liabilities: Interest-bearing liabilities: Interest-bearing deposits: Demand deposits...................... $ 78,454 $ - $ - $163,202 $ 241,656 Savings and money market deposits.... 95,750 - - 205,047 300,797 Time deposits (3).................... 206,006 449,039 78,832 31,822 765,699 Funds purchased......................... 170,925 - - - 170,925 Short-term borrowings (4)............... 89,321 - - - 89,321 Long-term debt.......................... 48,719 15,044 17,062 143 80,968 -------- --------- -------- -------- ---------- Total interest-bearing liabilities... $689,175 $ 464,083 $ 95,894 $400,214 $1,649,366 -------- --------- -------- -------- ---------- Period gap.................................. $ 6,367 $(174,461) $260,458 $ 92,933 ======== ========= ======== ======== Cumulative gap.............................. $ 6,367 $(168,094) $ 92,364 $185,297 $ 185,297 ======== ========= ======== ======== ========== Ratio of cumulative gap to total earning assets............................. 0.35% -9.16% 5.03% 10.10%
____________________________ (1) Excludes nonaccrual loans of $4,043,000. (2) Excludes available for sale equity securities of $10,448,000. (3) Excludes matured certificates which have not been redeemed by the customer and on which no interest is accruing. (4) Includes treasury, tax and loan account of $4,932,000. 24 Alabama National generally benefits from increasing market rates of interest when it has an asset-sensitive gap and generally benefits from decreasing market rates of interest when it is liability sensitive. Alabama National is liability sensitive through the one year time frame, except for the zero through three month period. However, Alabama National's gap analysis is not a precise indicator of its interest sensitivity position. The analysis presents only a static view of the timing of maturities and repricing opportunities, without taking into consideration that changes in interest rates do not affect all assets and liabilities equally. For example, rates paid on a substantial portion of core deposits may change contractually within a relatively short time frame, but those rates are viewed by management as significantly less interest- sensitive than market-based rates, such as those paid on non-core deposits. Accordingly, management believes that a liability-sensitive gap position is not as indicative of Alabama National's true interest sensitivity as it would be for an organization which depends to a greater extent on purchased funds to support earning assets. Net interest income may be affected by other significant factors in a given interest rate environment, including changes in the volume and mix of earning assets and interest-bearing liabilities. Market Risk - ----------- Alabama National's earnings are dependent on its net interest income which is the difference between interest income earned on all earning assets, primarily loans and securities, and interest paid on all interest bearing liabilities, primarily deposits. Market risk is the risk of loss from adverse changes in market prices and rates. Alabama National's market risk arises primarily from inherent interest rate risk in its lending, investing and deposit gathering activities. Alabama National seeks to reduce its exposure to market risk through actively monitoring and managing its interest rate risk. Management relies upon static "gap" analysis to determine the degree of mismatch in the maturity and repricing distribution of interest earning assets and interest bearing liabilities which quantifies, to a large extent, the degree of market risk inherent in Alabama National's balance sheet. Gap analysis is further augmented by simulation analysis to evaluate the impact of varying levels of prevailing interest rates and the sensitivity of specific earning assets and interest bearing liabilities to changes in those prevailing rates. Simulation analysis consists of evaluating the impact on net interest income given changes from 200 basis points below to 200 basis points above the current prevailing rates. Management makes certain assumptions as to the effect varying levels of interest rates have on certain earning assets and interest bearing liabilities, which assumptions consider both historical experience and consensus estimates of outside sources. With respect to the primary earning assets, loans and securities, certain features of individual types of loans and specific securities introduce uncertainty as to their expected performance at varying levels of interest rates. In some cases, imbedded options exist whereby the borrower may elect to repay the obligation at any time. These imbedded prepayment options make anticipating the performance of those instruments difficult given changes in prevailing rates. At June 30, 2000, mortgage backed securities totaling $199.9 million, or 9.69% of total assets and essentially every loan, net of unearned income, (totaling $1.47 billion, or 71.5% of total assets), carry such imbedded options. Management believes that assumptions used in its simulation analysis about the performance of financial instruments with such imbedded options are appropriate. However, the actual performance of these financial instruments may differ from management's estimates due to several factors, including the diversity and financial sophistication of the customer base, the general level of prevailing interest rates and the relationship to their historical levels, and general economic conditions. The difference between those assumptions and actual results, if significant, could cause the actual results to differ from those indicated by the simulation analysis. Deposits totaled $1.55 billion, or 74.9%, of total assets at June 30, 2000. Since deposits are the primary funding source for earning assets, the associated market risk is considered by management in its simulation analysis. Generally, it is anticipated that deposits will be sufficient to support funding requirements. However, the rates paid for deposits at varying levels of prevailing interest rates have a significant impact on net interest income and therefore, must be quantified by Alabama National in its simulation analysis. Specifically, Alabama National's spread, the difference between the rates earned on earning assets and rates paid on interest bearing liabilities, is generally higher when prevailing rates are higher. As prevailing rates reduce, the spread tends to compress, with severe compression at very low prevailing interest rates. This characteristic is called "spread compression" and adversely effects net interest income in the simulation analysis when anticipated prevailing rates are reduced from current rates. Management relies upon historical experience to estimate the degree of spread compression in its simulation analysis. Management believes that such estimates of possible spread compression are reasonable. However, if the degree of spread compression varies from that expected, the actual results could differ from those indicated by the simulation analysis. 25 The following table illustrates the results of simulation analysis used by Alabama National to determine the extent to which market risk would affect net interest margin for the next twelve months if prevailing interest rates increased or decreased the specified amounts from current rates. Because of the inherent use of estimates and assumptions in the simulation model used to derive this information, the actual results of the future impact of market risk on Alabama National's net interest margin may differ from that found in the table. MARKET RISK (Amounts in thousands)
As of June 30, 2000 As of December 31, 1999 Change in -------------------- ------------------------ Prevailing Interest Net Interest Change from Net Interest Change from Rates Income Amount Income Amount Income Amount Income Amount - ------------------- --------------- --------------- --------------- --------------- +200 basis points $86,476 5.33% $74,125 1.49% +100 basis points 84,274 2.65 73,490 0.62 0 basis points 82,098 - 73,037 - -100 basis points 80,683 (1.72) 71,591 (1.98) -200 basis points 77,811 (5.22) 69,424 (4.95)
Liquidity and Capital Adequacy - ------------------------------ Alabama National's net loan to deposit ratio was 95.4% at June 30, 2000, compared to 91.5% at year-end 1999. Alabama National's liquid assets as a percentage of total deposits were 7.26% at June 30, 2000, compared to 7.87% at year-end 1999. At June 30, 2000, Alabama National had unused federal funds lines of approximately $113.7 million, unused lines at the Federal Home Loan Bank of $110.8 million and an unused credit line with a third party bank of $14.6 million. During the 2000 second quarter, the maximum credit amount under this third party bank facility was increased from $20.0 million to $32.0 million. The Company also has access to approximately $159.0 million via a credit facility with the Federal Reserve Bank of Atlanta. At June 30, 2000 and year-end 1999, there were no outstanding borrowings under this Federal Reserve credit facility. Management analyzes the level of off-balance sheet assets such as unfunded loan commitments and outstanding letters of credit as they relate to the levels of cash, cash equivalents, liquid investments, and available funds lines in an attempt to minimize the possibility that a potential liquidity shortfall will exist. Based on this analysis, management believes that Alabama National has adequate liquidity to meet short-term operating requirements. However, no assurances can be given in this regard. Alabama National's stockholders' equity increased by $5.2 million from December 31, 1999 to $143.5 million at June 30, 2000. This increase was attributable to the following (in thousands): Net income.................................................................... $11,561 Dividends..................................................................... (4,648) Purchase of treasury stock.................................................... (491) Issuance of stock from treasury............................................... 7 Increase in unrealized loss on securities available for sale, net of deferred taxes................................... (1,181) ------- Net increase.................................................................. $ 5,248 =======
26 A strong capital position is vital to the continued profitability of Alabama National because it promotes depositor and investor confidence and provides a solid foundation for future growth of the organization. The capital of Alabama National and its subsidiary banks (the "Banks") exceeded all prescribed regulatory capital guidelines at June 30, 2000. Under the capital guidelines of their regulators, Alabama National and the Banks are currently required to maintain a minimum risk-based total capital ratio of 8%, with at least 4% being Tier 1 capital. Tier 1 capital consists of common stockholders' equity, qualifying perpetual preferred stock, and minority interests in equity accounts of consolidated subsidiaries, less goodwill. In addition, Alabama National and the Banks must maintain a minimum Tier 1 leverage ratio (Tier 1 capital to total assets) of at least 3%, but this minimum ratio is increased by 100 to 200 basis points for other than the highest rated institutions. The following table sets forth the risk-based and leverage ratios of Alabama National and each subsidiary bank at June 30, 2000:
Tier 1 Risk Total Risk Tier 1 Based Based Leverage ----------- ---------- -------- Alabama National BanCorporation................................... 9.07 % 10.29 % 7.05 % National Bank of Commerce of Birmingham........................... 9.23 10.42 7.52 Alabama Exchange Bank............................................. 12.20 13.45 7.37 Bank of Dadeville................................................. 12.11 13.31 7.71 Citizens & Peoples Bank, N.A...................................... 13.21 14.46 9.13 Community Bank of Naples, N.A..................................... 10.06 11.31 7.13 First American Bank............................................... 9.58 10.83 7.89 First Citizens Bank............................................... 13.39 14.56 7.11 First Gulf Bank................................................... 8.96 10.21 7.08 Georgia State Bank................................................ 11.21 12.39 7.24 Public Bank....................................................... 11.01 12.13 8.02 Required minimums................................................. 4.00 8.00 4.00
27 Item 3 - Quantitative and Qualitative Disclosures about Market Risk The information required by this item is contained in Item 2 herein under the headings "Interest Rate Sensitivity" and "Market Risk". Part II Other Information Item 4 - Submission of Matters to a Vote of Security-Holders Alabama National held its Annual Meeting of Stockholders on April 27, 2000. At the meeting, the stockholders of the Company were asked to vote on the election of 14 directors to serve until the next annual meeting of stockholders and their successors are elected and qualified. The results of the stockholder voting on this matter is summarized as follows: WITHHOLD FOR AUTHORITY --- --------- Election of directors: W. Ray Barnes............................. 9,265,389 6,163 Dan M. David.............................. 9,266,021 5,531 T. Morris Hackney......................... 9,267,171 4,381 John H. Holcomb, III...................... 9,266,169 5,383 John D. Johns............................. 9,267,271 4,281 John J. McMahon, Jr....................... 9,128,811 142,741 C. Phillip McWane......................... 9,266,071 5,481 William D. Montgomery..................... 9,267,271 4,281 Drayton Nabers, Jr........................ 9,267,171 4,381 Victor E. Nichol, Jr...................... 9,267,271 4,281 C. Lloyd Nix.............................. 9,267,123 4,429 G. Ruffner Page, Jr....................... 9,266,071 5,481 William E. Sexton......................... 9,267,023 4,529 W. Stancil Starnes........................ 9,267,271 4,281 Item 6 - Exhibits and Reports on Form 8-K (a) Exhibits: Exhibit 3.1 - Certificate of Incorporation (filed as an Exhibit to Alabama National's Registration Statement on Form S-1 (Commission File no. 33- 83800) and incorporated herein by reference). Exhibit 3.1A - Certificate of Amendment of Certificate of Incorporation (filed as an Exhibit to Alabama National's Annual Report of Form 10-K for the year ended December 31, 1996 and incorporated herein by reference). Exhibit 3.1B - Certificate of Merger (filed as an Exhibit to Alabama National's Annual Report of Form 10-K for the year ended December 31, 1997 and incorporated herein by reference). Exhibit 3.1C - Certificate of Amendment of Certificate of Incorporation dated April 23, 1998 (filed as an Exhibit to Alabama National's Report of Form 10-Q for the quarter ended March 31, 1998 and incorporated herein by reference). Exhibit 3.2 - Bylaws (filed as an Exhibit to Alabama National's Registration Statement on Form S-1 (Commission File No. 33-83800) and incorporated herein by reference). Exhibit 10.1 - Fourth Amendment to Credit Agreement between Alabama National BanCorporation and AmSouth Bank dated May 31, 2000. Exhibit 11 - Computation of Earnings Per Share Exhibit 27 - Financial Data Schedule (for SEC use only) (b) Reports on Form 8-K None. 28 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. ALABAMA NATIONAL BANCORPORATION Date: August 10, 2000 /s/ John H. Holcomb, III --------------- ------------------------ John H. Holcomb, III, its Chairman and Chief Executive Officer Date: August 10, 2000 /s/ William E. Matthews, V. --------------- --------------------------- William E. Matthews, V., its Executive Vice President and Chief Financial Officer 29 EX-10.1 2 0002.txt FOURTH AMENDMENT TO CREDIT AGREEMENT EXHIBIT 10.1 [EXECUTION COPY] FOURTH AMENDMENT TO CREDIT AGREEMENT ------------------------------------ THIS FOURTH AMENDMENT TO CREDIT AGREEMENT ("this Amendment") dated as of May 31, 2000 but executed on June 20, 2000 is entered into by ALABAMA NATIONAL BANCORPORATION, a Delaware corporation (the "Borrower") and AMSOUTH BANK, an Alabama banking corporation and formerly known as AmSouth Bank of Alabama (the "Lender"). Recitals -------- A. The Borrower and the Lender have entered into a Credit Agreement dated as of December 29, 1995 as amended by a First Amendment thereto dated as of January 20, 1997, a Second Amendment thereto dated as of January 19, 1998 and a Third Amendment thereto dated as of May 31, 1999 (as so amended, the "Agreement"). B. The Borrower and the Lender now desire to further amend the definitions of "Facility Termination Date" and "Maximum Credit Amount" and to make the other changes set forth in this Amendment. Agreement --------- NOW, THEREFORE, in consideration of the recitals and the mutual obligations and covenants contained herein, the Borrower and the Lender hereby agree as follows: 1. Capitalized terms used in this Amendment and not otherwise defined herein have the respective meanings attributed thereto in the Agreement. 2. The defined term "Facility Termination Date" set forth in Article I of the Agreement is hereby further amended to read, in its entirety, as follows: "Facility Termination Date" means May 31, 2001, as such date may be ------------------------- extended from time to time pursuant to Section 2.5 or accelerated pursuant to Section 7.2. 3. The defined term "Maximum Credit Amount" set forth in Article I of the Agreement is hereby amended to read, in its entirety, as follows: "Maximum Credit Amount" means $32,000,000. --------------------- 4. The reference in Section 2.1 of the Agreement to the figure "$20,000,000" is hereby amended to read "$32,000,000". 5. Exhibit D to the Credit Agreement shall be amended in its entirety and --------- replaced with Revised Exhibit D attached hereto and made a part hereof. ----------------- 6. Notwithstanding the execution of this Amendment, all of the indebtedness evidenced by the Note shall remain in full force and effect, as modified hereby, and all of the collateral described in the Agreement and the Credit Documents shall remain subject to the liens, security interests and assignments of the Agreement and the Credit Documents as security for the indebtedness evidenced by the Note and all other indebtedness described therein; and nothing contained in this Amendment shall be construed to constitute a novation of the indebtedness evidenced by the Note or to release, satisfy, discharge, terminate or otherwise affect or impair in any manner whatsoever (a) the validity or enforceability of the indebtedness evidenced by the Note; (b) the liens, security interests, assignments and conveyances effected by the Agreement or the Credit Documents, or the priority thereof; (c) the liability of any maker, endorser, surety, guarantor or other person that may now or hereafter be liable under or on account of the Note or the Agreement or the Credit Documents; or (d) any other security or instrument now or hereafter held by the Lender as security for or as evidence of any of the above-described indebtedness. 7. All references in the Credit Documents to "Credit Agreement" shall refer to the Agreement as amended by this Amendment, and as the Agreement may be further amended from time to time. 8. The Borrower certifies that the organizational documents of the Borrower have not been amended since May 31, 1999. 9. The Borrower hereby represents and warrants to the Lender that all representations and warranties contained in the Agreement are true and correct as of the date hereof (except representations and warranties that are expressly limited to an earlier date); and the Borrower hereby certifies that no Event of Default nor any event that, upon notice or lapse of time or both, would constitute an Event of Default, has occurred and is continuing. 10. Except as hereby amended, the Agreement shall remain in full force and effect as written. This Amendment may be executed in one or more counterparts, each of which shall be deemed an original, and all of which when taken together shall constitute one and the same instrument. The covenants and agreements contained in this Amendment shall apply to and inure to the benefit of and be binding upon the parties hereto and their respective successors and permitted assigns. 11. Nothing contained herein shall be construed as a waiver, acknowledgment or consent to any breach of or Event of Default under the Agreement and the Credit Documents not specifically mentioned herein, and the consents granted herein are effective only in the specific instance and for the purposes for which given. 12. This Amendment shall be governed by the laws of the State of Alabama. 2 IN WITNESS WHEREOF, the Borrower and the Lender have caused this Amendment to be executed and delivered by their duly authorized corporate officers as of the date set forth below their signature. ALABAMA NATIONAL BANCORPORATION By /s/ William E. Matthews V --------------------------------- Its Executive Vice President and ------------------------------ Chief Financial Officer ------------------------------ Dated: June 20, 2000 AMSOUTH BANK By /s/ John M. Kettig --------------------------------- Its Senior Vice President Dated: June 20, 2000 3 REVISED EXHIBIT D --------- Subsidiaries Stock Information ------------------------------ Certificate No. of Subsidiary No. Shares ---------- ----------- --------- 1. National Bank of 204 659,251 Commerce of Birmingham 2. Alabama Exchange C285 3,134 Bank C284 16,006 C283 21 C281 102 3. Bank of Dadeville 445 4,000 4. First Gulf Bank 2 2,500 5. Citizens and Peoples 3 25,000 Bank National Association 6. First American Bank 781 20,000 7. Public Bank of St. 365 231,550 Cloud 8. First Citizens Bank, 553 986 2/3 Talladega, Alabama 9. Community Bank of 001 1,000,000 Naples, National Association 10. Georgia State Bank 2 453,912 D-1 EX-11 3 0003.txt COMPUTATION OF EARNINGS PER SHARE EXHIBIT 11 Alabama National BanCorporation Computation of Earnings Per Share (Unaudited) (In thousands, except per share amounts) ----------------------------------------
Per Share Income Shares Amount ------ ------ ------ THREE MONTHS ENDED JUNE 30, 2000 Basic EPS net income................................... $ 5,903 11,065 $ 0.53 ====== Effect of dilutive securities options.................. - 153 ------- ------ Diluted EPS............................................ $ 5,903 11,218 $ 0.53 ======= ====== ====== THREE MONTHS ENDED JUNE 30, 1999 Basic EPS net income................................... $ 5,380 11,100 $ 0.48 ====== Effect of dilutive securities options.................. - 167 ------- ------ Diluted EPS............................................ $ 5,380 11,267 $ 0.48 ======= ====== ====== SIX MONTHS ENDED JUNE 30, 2000 Basic EPS net income................................... $11,561 11,066 $ 1.04 ====== Effect of dilutive securities options.................. - 146 ------- ------ Diluted EPS............................................ $11,561 11,212 $ 1.03 ======= ====== ====== SIX MONTHS ENDED JUNE 30, 1999 Basic EPS net income................................... $10,399 11,061 $ 0.94 ====== Effect of dilutive securities options.................. - 175 ------- ------ Diluted EPS............................................ $10,399 11,236 $ 0.93 ======= ====== ======
EX-27 4 0004.txt FINANCIAL DATA SCHEDULE
9 1,000 6-MOS DEC-31-2000 JAN-01-2000 JUN-30-2000 92,231 1,760 18,279 18 311,315 36,070 36,275 1,474,586 19,159 2,062,669 1,545,682 84,389 32,270 80,968 0 0 11,187 132,316 2,062,669 61,921 11,831 1,366 75,118 29,927 8,589 36,602 1,153 0 34,030 16,669 16,669 0 0 11,561 1.04 1.03 4.10 4,041 0 2 16,628 18,068 445 383 19,159 19,159 0 19,159
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